{"id":42231,"date":"2019-06-27T13:54:38","date_gmt":"2019-06-27T13:54:38","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2019\/06\/27\/here-are-the-biggest-weaknesses-in-americas-defense-sector\/"},"modified":"2026-08-07T23:25:12","modified_gmt":"2026-08-07T23:25:12","slug":"here-are-the-biggest-weaknesses-in-americas-defense-sector","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/pentagon\/2019\/06\/27\/here-are-the-biggest-weaknesses-in-americas-defense-sector\/","title":{"rendered":"Here are the biggest weaknesses in America\u2019s defense sector"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 Production of a component vital to protecting American troops from chemical attacks that can\u2019t keep up with need. Key suppliers of aircraft parts that could go bankrupt at any time. A key producer of <a href=\"https:\/\/www.defensenews.com\/pentagon\/2018\/05\/22\/the-us-is-running-out-of-bombs-and-it-may-soon-struggle-to-make-more\/\" target=\"_blank\">missile components<\/a> that closed for two years before the Pentagon found out.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These are just some of the key findings of an annual report from the Pentagon judging the greatest risks to the defense industrial sector, underlining that while the overall defense industry continues to bring in <a href=\"https:\/\/www.defensenews.com\/top-100\/2018\/08\/09\/the-list-is-here-the-largest-defense-companies-on-the-globe-revealed\/\" target=_blank>massive profits<\/a>, not all is well among the suppliers of key components that, while small pieces of larger systems, could impact America\u2019s ability to wage war.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The annual \u201c<a href=\"https:\/\/www.businessdefense.gov\/Portals\/51\/Documents\/Resources\/2018%20AIC%20RTC%2005-23-2019%20-%20Public%20Release.pdf?ver=2019-06-07-111121-457\" target=_blank>Industrial Capabilities<\/a>\u201d report, quietly released May 13 by the Defense Department\u2019s Office of Manufacturing and Industrial Base Policy, found that despite total dollars spent by the department on weapons and ammunition increasing year over year since 2016, the number of vendors supplying them has decreased.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, while the report found generally positive trends for the U.S. defense sector, it did warn that in certain areas, <a href=\"https:\/\/www.defensenews.com\/industry\/2018\/11\/08\/the-us-brought-in-1923-billion-from-weapon-sales-last-year-up-13-percent\/\" target=_blank>foreign weapon sales<\/a> are decreasing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, the U.S. saw its market share of global naval weapon exports go from 63 percent in 2007 to just 17 percent in 2017. And from 2008-2017, two reliable buyers of U.S. defense goods \u2014 Pakistan and South Korea \u2014 saw their U.S. procurement percentages drop. Pakistan went from 31 percent to 12 percent, while South Korea went from 78 percent to 53 percent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is the first Industrial Capabilities report to be published since the October release of a White House-mandated study on the <a href=\"https:\/\/www.defensenews.com\/pentagon\/2018\/10\/04\/white-house-warns-of-domestic-extinction-of-suppliers-in-industrial-base-report-and-dod-is-ready-to-help-with-cash\/\" target=_blank>defense-industrial base<\/a>. That study concluded, in part, that the government needs to increase use of its Defense Production Act Title III authorities, which allows the government to expend funds to support key production lines that might now otherwise survive.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/c4isrnet\/space\/2019\/06\/27\/a-new-report-on-why-military-space-is-so-expensive\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Cover_2.jpg_e2d433.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">A new report on why military space is so expensive<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">A new Pentagon report notes that the space industrial base remains fragile, and despite attempts to bolster it many critical components remain nonviable commercially.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The latest report says that through March 2019, seven presidential determinations were issued to address \u201ckey industrial base shortfalls in lithium sea-water batteries, alane fuel cell technology, sonobuoys production, and critical chemicals production for missiles and munitions.\u201d However, details of those agreements, such as <a href=\"https:\/\/www.defensenews.com\/pentagon\/2018\/11\/02\/pentagon-predicts-a-third-of-industrial-base-gaps-could-be-addressed-in-one-year\/\" target=_blank>how much funding<\/a> might go toward fixing the issues, were pushed into a nonpublic appendix.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the biggest concerns, broken down by sector:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Aircraft:<\/b> The report cites long product and system development timelines, high costs for development and qualification, and limits on production as broad issues in the aircraft sector. Those issues are inherent in major defense programs, but the report also calls out the aging workforce and consolidation among the industrial base, which \u201chas expanded into the sub-tiers of the supply chain, creating additional risks for single or sole source vendors.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As an example, the report notes there are only four suppliers with the ability to manufacture \u201clarge, complex, single-pour aluminum and magnesium sand castings\u201d needed to make key parts of military aircraft. These four suppliers face \u201cperpetual financial risk and experience bankruptcy threats\u201d due to the insecure nature of Pentagon funding.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe single qualified source for the upper, intermediate, and sump housing for a heavy-lift platform for the Marines has experienced quality issues and recently went through bankruptcy proceedings,\u201d the report adds. \u201cWithout a qualified or alternate qualified source for these castings, the program will face delays, impeding the U.S. ability to field heavy-lift support to Marine Corps expeditionary forces.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finding qualified software engineers is another issue identified, with the report warning it is \u201cincreasingly difficult to hire skilled, cleared, and capable software engineers. As aircraft continue to increase in software complexity, it will become even more important for the sector to hire skilled software engineers.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Ground systems:<\/b> The report says the Pentagon\u2019s plan of incremental updates to existing systems rather than wholesale new designs has created \u201ca generation of engineers and scientists that lack experience in conceiving, designing, and constructing new, technologically advanced combat vehicles.\u201d But the same issues of consolidation and lack of budget stability that showed up in the aircraft sector impact the ground vehicle sector.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cLegislation and DoD industrial policy requires DoD to manufacture all large-caliber gun barrels, howitzer barrels, and mortar tubes at one organic DoD arsenal,\u201d the report cites as an example. \u201cThere is only one production line at the arsenal for all of these items, and policy modifications to meet demand and surge from overseas have led to a lack of capacity to meet current production requirements.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Shipbuilding sector:<\/b> When it comes to maritime vessels, the \u201cmost significant risks found were a dependence on single and sole source suppliers, capacity shortfalls, a lack of competition, a lack of workforce skills, and unstable demand,\u201d the report found.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The lack of competition goes from the highest levels, where four companies control the seven shipyards building military vessels, to the lowest components, such as \u201chigh-voltage cable, propulsor raw material, valves, and fittings.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Workforce concerns also dominate the shipbuilding sector. The report cites statistics from the Department of Labor predicting that between 2018 and 2026, there will be a 6\u201317 percent decrease in U.S. jobs in occupations critical to Navy shipbuilding projects, \u201csuch as metal layout (ship-fitting), welding, and casting.\u201d If that is not addressed, a lack of skilled workers \u201cwill significantly impact the shipbuilding industry\u2019s ability to meet the Navy\u2019s long-term demand.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Munitions sector:<\/b> A major concern in last year\u2019s annual report was the future of the U.S. munitions sector, and many of those issues remain in the 2019 version. The report identified \u201cmultiple risks and issues, including material obsolescence and lack of redundant capability, lack of visibility into sub-tier suppliers causing delays in the notification of issues, loss of design and production skill, production gaps and lack of surge capacity planning, and aging infrastructure to manufacture and test the products.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/pentagon\/2018\/05\/22\/the-us-is-running-out-of-bombs-and-it-may-soon-struggle-to-make-more\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Amraam_2.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">The US is running out of bombs \u2014 and it may soon struggle to make more<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">America&#039;s best weapons now rely on parts from an increasingly shrinking industrial base \u2014 and in some cases, is totally reliant on Chinese-made materials.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">As an example, the report points to a voltage control switch, used in ignition devices and flight termination systems for Department of Defense missiles. Several years ago, the foundry that made a key component for the switch was purchased by another foundry, which then decided to close the factory. The Pentagon was not informed until two years after the foundry was closed, at which point \u201cit became evident that the end-of-life buy, which was designed to last from three to five years, would only last six months.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In another case, two key chemicals in solid-fuel rocket motors became obsolete, requiring the DoD to scramble for potential replacements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Chemical, biological and radiological sector:<\/b> The chemical, biological, radiological and nuclear defense sector provides protection for war fighters through items like respirators, masks and vaccines. But the report found serious issues regarding the industrial base\u2019s ability to provide that capabilities, indicating that Title III authorities might be needed in the near future to maintain production.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As an example, the report points to production of ASZM\u2011TEDA1 impregnated carbon, a defense-unique material with only a single qualified source that, as a result, \u201cprecludes assurances for best quality and price.\u201d The carbon is used in 72 chemical, biological and nuclear filtration systems, and the report notes that current sourcing arrangements \u201ccannot keep pace with demand.\u201d The DoD is already using Title III to modernize the production line and try to establish a second source for the material.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Soldier systems:<\/b> The collapse of the American textile market over the last three decades has left the department depending on single sources or foreign suppliers for soldier systems. Additionally, battery production is identified as a potential future issue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cLack of stable production orders has resulted in lost capability and capacity, increased surge lead times, workforce erosion, and inhibited investments by remaining suppliers. Surge-capacity-limiting constraints occur at several points along the value chain, from raw material to final battery assembly,\u201d the report says.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Space systems:<\/b> Aside from major issues around future threats to space assets from near-peer competitors, the report identifies major industrial base concerns for space as including \u201caerospace structures and fibers, radiation-hardened microelectronics, radiation test and qualification facilities, and satellite components and assemblies.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other areas include solar panel development \u2014 \u201cThere is not enough space business for companies to justify R&amp;D to improve cells without [government] help,\u201d the report says \u2014 the erosion of the traveling-wave tube industry, and a lack of suppliers for key parts needed to produce precision gyroscopes needed for spacefaring systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Electronics:<\/b> The Pentagon has been sounding the alarm about China\u2019s growing power in the printed circuit board market, and this report continues that trend. The United States now accounts for only 5 percent of global production, representing a 70 percent decrease from $10 billion in 2000 to $3 billion in 2015, per the report. Meanwhile, almost half of global production comes from China.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new Pentagon report lays out some of the major issues the defense-industrial base poses for America&#8217;s weapons.<\/p>\n","protected":false},"author":7,"featured_media":29294,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":19,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":{"2":{"categories":["pentagon-congress","news","middle-column","home"],"primary_category":"pentagon-congress"},"4":{"categories":["pentagon-congress","news","daily-news-roundup","newsletters","middle-column","home"],"primary_category":"pentagon-congress"},"9":{"categories":["home","industry","daily-brief","newsletters"],"primary_category":"industry"}}},"categories":[160,11,12,36,19,48],"tags":[],"coauthors":[3378],"class_list":["post-42231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-global","category-industry","category-newsletters","category-pentagon","category-the-americas"],"acf":{"subheadline":"","legacy_arc_id":"DJYR5WOTNRDTDDQPLMMDSHLXIQ","arc_canonical_url":"\/pentagon\/2019\/06\/27\/here-are-the-biggest-weaknesses-in-americas-defense-sector\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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